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Blockchain Technology - Lecture 8a

The document provides an overview of Bitcoin transactions, highlighting the transaction-based model, properties of transactions, and the role of scripts in verifying and executing transactions. It discusses the characteristics of hash functions essential for Bitcoin's security, including determinism, quick computation, pre-image resistance, randomization, and collision resistance. Additionally, it touches on the structure of transaction metadata, inputs, and outputs, emphasizing the importance of scripts in the transaction process.

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Auzair Raja
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© © All Rights Reserved
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11 views18 pages

Blockchain Technology - Lecture 8a

The document provides an overview of Bitcoin transactions, highlighting the transaction-based model, properties of transactions, and the role of scripts in verifying and executing transactions. It discusses the characteristics of hash functions essential for Bitcoin's security, including determinism, quick computation, pre-image resistance, randomization, and collision resistance. Additionally, it touches on the structure of transaction metadata, inputs, and outputs, emphasizing the importance of scripts in the transaction process.

Uploaded by

Auzair Raja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Bitcoin – nuts and bolts

[transactions + scripts]
TRANSACTIONS
banks
account-based paradigm
housekeeping

1
TRANSACTIONS
transaction-based model
append-only ledger
inputs, outputs
change addresses

2
PROPERTIES
efficient verification
consolidating funds
joint payments

3
SYNTAX: METADATA

{
transaction
hash "hash":"5a42590...b8b6b",
"ver":1,
housekeepi "vin_sz":2,
ng
"vout_sz":1,
not valid
before "lock_time":0,
housekeepi "size":404,
ng
...
}
4
TRANSACTION INPUTS
"in":[
{
"prev_out":{
previous "hash":"3be4...80260",
transaction
"n":0
},
signatu "scriptSig":"30440....3f3a4ce81"
re },
(more inputs) ...
],

5
TRANSACTION OUTPUTS
more
"out":[
{
output "value":"10.12287097",
value
"scriptPubKey":"OP_DUP
OP_HASH160 69e...3d42e
OP_EQUALVERIFY OP_CHECKSIG"
(more },
outputs)
...
recipient
] address

6
SCRIPTS
why scripts?
basic script: redeem by signature from owner of address
X

X = H(public key)
redeem by public key that hashes to X, along with
signature by owner of that public key

most common script

inputs also contain scripts!


combine input with earlier output script and run
scriptPubKey, scriptSig 7
COMMON INSTRUCTIONS

bug: extra data value popped from stack, ignored

9
EXECUTION
stack
no memory or variables
data instructions, opcodes

10
HUMOR
READING MATERIAL
Chap 3: Bitcoin Mechanics
Bitcoin and Cryptocurrency Technologies:
A Comprehensive Introduction
Bitcoins the hard way (link)
Scripts (link)

12
Characteristics of Hash
Function
● Deterministic
● Quick Computation
● Pre-image Resistance
● Randomized
● Collision Resistant
Characteristics: Deterministic
● A hash function needs to have a fixed or
specific output
● It means is that it doesn’t matter what
number of times you process a given
input using a hash function; the result is
always of the same length.
● The hashes can be random and of
different patterns, but the same
size/length
Characteristics: Quick
Computation
● The hash function should be capable of
returning the hash of input quickly. If the
process isn’t fast enough then the
system simply won’t be efficient.
● If an ordinary computer needed several
minutes to process a cryptographic hash
function and receive the output, it would
not be very practical.
● Nowadays, an average home computer
Characteristics: Pre-image
Resistance
● Pre-image resistance means that the
output of a cryptographic hash function
must not reveal any information about
the input
● If a hash function ‘h’ produced a hash
value ‘z’, then it should be a difficult
process to find any input value ‘x’ that
hashes to ‘z’
● If a single word produces small hash and
Characteristics: Randomized
● Hash functions should produce different
outputs for every input, even if the input
data differs by only a digit or letter
● Hash of ‘Alpha’ should never be equal to
hash of ‘Alpha1’, ‘1Alpha’, ‘Alp1ha’, ‘Al
pha’, ‘alpha’ or any other such
combination.
Characteristics: Collision
Resistant
● It must be extremely unlikely to find two
different inputs that produce the same
output
● There are infinite possible inputs that
can be entered into a hash function
However, outputs are of a fixed length.
● This means that there are a finite
number of outputs that a hash function
can produce.

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